00                            HOUSE BILL NO. 316                                                                          
01 "An Act providing for a standardized improvement tracking system for state agencies."                                   
02 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
03    * Section 1. AS 44.66 is amended by adding a new section to read:                                                  
04              Article 2. Standardized Improvement Tracking System.                                                     
05 Sec. 44.66.100. Standardized improvement tracking system. (a) The                                                     
06 governor shall implement a standardized improvement tracking system for state                                           
07 agencies. Each state agency shall designate one person from the agency to administer                                    
08       the system for that agency.                                                                                       
09            (b)  The standardized improvement tracking system must enable tracking of the                                
10       status, progress, and closure of actions arising from audit findings, corrective and                              
11       preventive action requests, and other valid improvement opportunities identified by                               
12       agency employees, internal or external auditors, customers, and stakeholders.                                     
13            (c)  The standardized improvement tracking system must                                                       
14                 (1)  provide that each improvement opportunity for each state agency                                    
15       be uniquely tracked using the system;                                                                             

01                 (2)  validate each improvement to ensure that it can be logged and                                      
02       tracked as a unique improvement opportunity rather than an addition to or                                         
03       modification of an existing improvement opportunity;                                                              
04                 (3)  identify the following elements for each improvement item:                                         
05                      (A)  description of improvement opportunity;                                                       
06                      (B)  criticality rating based on an objective system of scoring                                    
07            the relative importance of improvement projects using elements including                                     
08            frequency, cost, and risk or opportunity;                                                                    
09                      (C)  identity of opportunity initiator;                                                            
10 (D)  source identifier, including audit finding or corrective or                                                        
11            preventive action;                                                                                           
12                      (E)  date entered into system;                                                                     
13 (F)  identity of persons responsible for ensuring completion of                                                         
14            the improvement;                                                                                             
15                      (G)  improvement action status;                                                                    
16                      (H)  scheduled completion date;                                                                    
17                      (I)  actual completion date;                                                                       
18 (J)  name of authorized person who may accept completion of                                                             
19            the improvement item; and                                                                                    
20 (K)  estimated cost, value, and savings of the improvement                                                              
21            expressed as an annual, one-time, or other cost as may be applicable;                                        
22                 (4)  provide a mechanism for state agencies to                                                          
23 (A)  analyze each improvement opportunity by reviewing                                                                  
24            causes, characteristics, and frequency of occurrence;                                                        
25 (B)  review the findings of the analysis to determine specific                                                          
26            programmatic or other root cause;                                                                            
27 (C)  determine the corrective action to be implemented that                                                             
28 addresses the root cause to prevent reoccurrence; corrective action shall be                                            
29            taken to eliminate the cause of a defect that has already occurred;                                          
30 (D)  develop an implementation schedule for each corrective                                                             
31            action and implement those actions in accordance with the schedule;                                          

01                      (E)  evaluate effectiveness of corrective and improvement                                          
02            action plans and implementation;                                                                             
03                 (5)  ensure evaluation of the effectiveness of a corrective action plan                                 
04       and assess improvements in operations and efficiencies; and                                                       
05                 (6)  provide for quarterly status reporting from the system administrator                               
06       to the head of an agency and annual status reporting from the governor to the                                     
07       legislature; quarterly and annual status reports must include the following:                                      
08                      (A)  quantity of open items;                                                                       
09                      (B)  quantity of closed items;                                                                     
10 (C)  aging of items approaching or beyond scheduled                                                                     
11            completion date;                                                                                             
12 (D)  cost or benefit of items closed during the reporting period                                                        
13            and fiscal year to date;                                                                                     
14 (E)  details of higher criticality items that have been closed                                                          
15            within the reporting period;                                                                                 
16 (F)  details of higher criticality items that have already extended                                                     
17            or are projected to extend beyond their original due date; and                                               
18 (G)  action plan for closure of higher criticality items that are                                                       
19            beyond their scheduled closure date.                                                                         
20            (d)  In this section,                                                                                        
21 (1)  "improvement" means a systematic action taken to correct or                                                        
22       prevent defects;                                                                                                  
23 (2)  "preventive action" means action taken to prevent the occurrence of                                                
24       a defect in the future;                                                                                           
25 (3)  "state agency" means the University of Alaska and a department,                                                    
26 institution, board, commission, division, authority, public corporation, or other                                       
27       administrative unit of the executive branch.